Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 77
Segment and Cash-generating
Sasolburg liquid fuels refinery
Secunda liquid fuels refinery
The impairment is mainly due to lower refining margins over the long-term and an
increase in the WACC rate.
The impairment is mainly due to lower crude oil prices, an increase in the WACC rate
and a higher cost to procure gas in the longer term.
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Significant impairment of assets in prior periods
At 30 June 2020, assets and liabilities relating to a combination of assets within
Sasol Chemicals USA have been classified as held for sale. An impairment was
recognised to reduce the carrying value of the disposal group down to its fair value
less cost to sell, including any portion that Sasol might retain in the disposal group.
Ammonia value chain*
The impairment is mainly due to lower international ammonia selling prices and
a decrease in volumes based on reduced market demand and a reduction in gas
allocated to the value chain.
Acrylates & Butanol value chain The impairment is mainly due to significantly lower selling prices coupled with a
long expected recovery period as operating rates are only expected to recover to
pre-COVID-19 levels by 2027. The CGU was also impacted by an increase in the WACC
rate and a higher cost to procure gas in the longer term.
Polyethylene value chain*
The impairment is mainly due to depressed selling prices caused by polyethylene
overcapacity, worsened by the impact of COVID-19, and higher feedstock costs.
Chlor Vinyls value chain*
The impairment is mainly due to significant lower selling prices which were only
partly offset by the weakening in the rand.
Chemical Work Up & Heavy
The impairment is mainly due to significantly lower selling prices and an increase in
Alcohols value chain*
the WACC rate. Overall Solvents prices decreased by 12% compared to the prior year.
Southern Africa Wax value
The impairment is mainly due to lower wax selling prices, an increase in the WACC
rate and the higher cost to procure gas in the longer term.
NOTES TO THE FINANCIAL STATEMENTS
LLDPE & LDPE
The impairment is mainly due to lower wax selling prices, driven by the negative
macro-economic conditions as well as increased market competition experienced
from low cost paraffin wax producers. This was partly offset by increased volumes in
the wax emulsion market.
* Impairment results for 2020 for these CGU's have been restated.
Segment and Cash-generating
Tetramerization value chain
The impairments were driven by an increase in capital cost for the Lake Charles
Chemicals Project (LCCP) and lower US ethylene and global mono-ethylene glycol
price assumptions as at 30 June 2019.
Ethylene Oxide/Ethylene Glycol The upstream ethane cracker is a corporate asset and the increase in its capital cost
has an impact on the downstream derivative units. All cash generating units linked
to the LCCP were assessed for impairment.
Sasol Canada – Shale gas assets The impairment was resulted from the depressed Canadian gas price environment.
SASOL LIMITED COMPANY
Ammonia value chain
The impairment was as a result of lower international ammonia sales price
assumptions in the short- to medium-term and increased gas feedstock prices in
the longer term.
Other (net of reversal of impairment)
Sasol Annual Financial Statements 2021